What Happened?
Shares of natural food company Hain Celestial (NASDAQ: HAIN) jumped 13.1% in the afternoon session after the company reported mixed third-quarter financial results, where a revenue beat and a positive outlook seemed to outweigh a wider-than-expected loss.
The natural food company posted an adjusted loss of eight cents per share, which missed analyst expectations for a five-cent loss. However, quarterly sales of $367.9 million came in ahead of the $360.5 million Wall Street had anticipated, even though sales declined by 6.8% compared to the previous year. Despite the earnings miss, management provided an encouraging outlook. The company noted it was seeing benefits from cost discipline and pricing actions. Furthermore, Hain Celestial expected stronger revenue and profit in the second half of its fiscal year and anticipated generating positive free cash flow for the full year, which appeared to boost investor confidence.
The shares closed the day at $1.22, up 14.6% from previous close.
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What Is The Market Telling Us
Hain Celestial’s shares are extremely volatile and have had 57 moves greater than 5% over the last year. But moves this big are rare even for Hain Celestial and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock dropped 49% on the news that the company reported underwhelming first quarter 2025 results as it missed across revenue, EPS, and EBITDA, and its full-year EBITDA guidance fell short of Wall Street's estimates. Revenue was down 11%, and margins slipped a bit too, hurt by heavier discounting and slower demand. Overall, this quarter could have been better.
Hain Celestial is down 80% since the beginning of the year, and at $1.20 per share, it is trading 86.1% below its 52-week high of $8.63 from December 2024. Investors who bought $1,000 worth of Hain Celestial’s shares 5 years ago would now be looking at an investment worth $38.97.
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